As my DH gets out of the shower, drys off and then wraps the towel around his waist, my 22 month old say, "I want see Daddy's penis." DH had no idea what to do. I almost LOST it! I think I would've been rolling on the floor if I wasn't 28 weeks pregnant.

My ds1 didn't have pants on and I to,d him not to touch his pens while eating. Then he pointed to his scrotum and said ""this" so i said "scrotum" and his response was "yes my penis and scrotum are touching right above my butt" then dissolved into laughter Ahhh dinner time talk.

LOL
DH is very private around DD, always has underwear on, etc. Okay, fine. I informed him that we would be using proper terms (penis and vulva) and he should be prepared.
DD is 2. A few months ago we were showering/getting ready to go somewhere and DH came into the bedroom wrapped in a towel and didn't turn away while getting into his drawers.
DD, completely nonchalantly, says "Huh. Daddy tail."
Me: No, sweetie, that's a penis."
DD: Nope, Daddy tail. I have juice now?

DH was beside himself. I had to explain to him why we could not just call it "tail" from then on :-)

A dear friend IRL has a fabulous story about when her 3YO DS discovered his scrotum.

Years ago dd1 walked into the bathroom as dh was getting out of the shower. She then informed me that daddy had an extra finger in a weird place. For several showers dd tried to get in the bathroom to check out daddy's finger. Dh locked the door to the bathroom for awhile.